WIRELESS Logic Technologies has received $10 million for research and development from the Government. The company will use the money to develop spread spectrum technology (SST) in cordless telephones. According to Raymond Young, Assistant Director-General of Industry (Technology Department), the United States accounts for 50 per cent of world cordless telephone usage, and Hong Kong and China account for half of the US market for cordless telephones. Thus the Government was naturally interested in supporting the industry, he said. Mr Young said: ''Wireless Logic's SST project is very important to Hong Kong since we are the leading supplier of cordless phones to the US and we need to keep ahead of our competitors.'' The technology was until 10 years ago reserved for US military use. Last year, the US Federal Communication Commission opened the three high frequency bands used in the technology to commercial users. SST allows multiple users, greater security, longer transmission distance, higher penetration power, noise immunity, efficient use of frequency spectrum and greater signal quality and stability, compared with conventional communication technology. According to John Lee, managing director of Wireless Logic, the company is the only one working to develop SST for consumer communications in Hong Kong, and several local and overseas manufacturers have shown interest in using completed chip sets in their products. The fund is the third such issued by the Government, and by far the largest. Mr Young said: ''The scheme was set up to assist locally registered companies which have difficulty raising capital through banks or venture capitalists. ''We are not venture capitalists ourselves in that we are not primarily concerned with making money. However, the Hong Kong Applied R & D Fund Co, which administers the scheme for the Government, promised the Legco Finance Panel a five per cent return onthe Government's $200 million investment.''